Del. senators demand weed czar nominee divest business holdings before vote

From Philly and the Pa. suburbs to South Jersey and Delaware, what would you like WHYY News to cover? Let us know!

The Delaware Senate is delaying a vote on Gov. Matt Meyer’s nominee to be the state’s next marijuana commissioner because of concerns over a conflict of interest.

Joshua Sanderlin’s business interests in New Jersey and Washington, D.C. cannabis companies could complicate his chances to become the state’s next weed czar.

Meyer nominated Sanderlin, a Washington, D.C.-based attorney and government affairs specialist, last month. He’s the principal of Sanderlin Strategies, PLLC, where he acts as a consultant and law firm for those navigating the legal and regulatory challenges surrounding the burgeoning marijuana industry.

According to his financial disclosure form provided to the Senate, he is a member and former manager of Hashtoria, partnering with Wu-Tang Clan rapper Raekwon, according to the New York Post. He is also a member and general counsel to House of Pink II LLC in D.C.

In a statement, Senate President Pro Tempore Dave Sokola said senators were ready to proceed to a floor vote on Sanderlin’s nomination after he satisfied their concerns regarding his companies.

“We look forward to engaging with Mr. Sanderlin to confirm details of plans for the statutorily required divestment of his business interests in the cannabis industry,” Sokola said.

Gov. Meyer’s office did not respond to a request for comment. His office previously said Sanderlin would be unavailable for an interview before he was confirmed.

In response to several questions about his business interests and conflicts of interest in his confirmation hearing Wednesday, Sanderlin said he would divest his holdings, if confirmed.

“I didn’t want to put the cart before the horse here knowing I had to come before this committee as well as the full Senate to be approved by my nomination,” he said. “We are so siloed by the states we are in that it’s really tough to say it’s a direct conflict. But as you stated, the statute clearly says any company that produces, manufacturers or retail sales.”

Sanderlin also committed to senators that he would cease acting as a lawyer or a consultant to focus on being Delaware’s marijuana commissioner.

The nominee argued that his experience as both made him the ideal candidate for the position.

“I think a lot of times for the history of cannabis, we have been in the shadows,” he said. “It has been prohibition. It has been in the dark. Right now is not the time to play half in, half out. We need folks in positions who make decisions based on what’s best for the industry, what’s best for the individual business owners, and what’s best for the citizens of the state, customers, patients, whatever they be.”

If approved by the Senate, Sanderlin could reflect an ideological shift in how the Office of Marijuana Commissioner views the state’s emerging legal market.

Former Marijuana Commissioner Rob Coupe had a law enforcement background. He was a state trooper from 1985 to 2013 and made arrests for pot possession before the laws changed. He also served as superintendent of the state police and headed up the Department of Correction. Coupe was chosen by former Gov. John Carney, who opposed legalizing recreational marijuana and vetoed legislation that would have allowed recreational sales in 2022.

Sanderlin has worked in the cannabis industry since 2013. He was involved in the passage of legalized marijuana in D.C., approved in 2014, despite Congress using its budgetary authority to prevent commercial adult-use sales. He was a partner at Cogent Law Group and an attorney at Greenberg Traurig.

Despite the delay in appointing a new commissioner, some strides have been made to roll out the recreational industry, after delays pushed back the opening of the state’s market, which was expected last month.

After two failed attempts to get the FBI to approve the state’s application to set up a fingerprint check system for cannabis license holders, state lawmakers passed legislation to address the federal agency’s concerns. The FBI has now partially accepted Delaware’s revised application, meaning lawmakers still need to pass an additional technical correction in a subsequent bill to secure full approval.

Lawmakers are also considering legislation that state Sen. Trey Paradee said will fix a provision in the 2023 bill legalizing recreational cannabis that allowed counties and municipalities broad discretion to set limits on where those businesses could operate. Some areas, especially in southern Delaware, have taken advantage of that language to almost completely ban retail stores. Paradee’s bill rolling back that language in exchange for less restrictive state-set standards passed the Senate last month. It’s currently waiting to be heard in a House committee.

This story was supported by a statehouse coverage grant from the Corporation for Public Broadcasting.